Implementing a new organizational structure requires careful consideration of company needs and goals, capable personnel, and clear communication with employees and customers. Key factors to consider include strengths, weaknesses, and goals, as well as the impact on day-to-day operations, human resources, and technology requirements. If positions are eliminated, severance packages and transitions must be managed, and customer perceptions must be addressed. Success depends on strong leadership and effective communication at all levels.
Sometimes, during the life of a company, it becomes necessary to implement a new organizational structure. This could be due to many factors, including company growth, a change in management, or a merger or acquisition. To move to a new structure, you must carefully weigh the options against your company’s needs and goals, ensure you have capable people in key positions, and clearly communicate the intent and details of the change to employees and, if necessary, to customers. .
You should carefully consider your company’s strengths, weaknesses, and goals before implementing a new organizational structure. Ask yourself how the change will alter each area of the company. You’ll need to consider not just day-to-day operations, but also changing human resources and new technology requirements.
If the new organizational structure eliminates positions, you have additional factors to consider. You will need to consider how you will privately inform employees that they do not have a job and decide how you will manage transitions. This includes providing severance packages to displaced employees and also transferring work to others. If you must eliminate highly visible positions or need to replace the people in those positions with other employees, you must also consider how the change might affect your customers’ perceptions of the company and formulate a plan to combat as much negative impact as possible. In all cases, you will need to be prepared to manage employee morale.
In many cases, the success of a new organizational structure depends on the ability of key personnel to manage change and manage their employees. In a large organization, this includes C-level executives as well as vice presidents and department heads. In smaller organizations, this includes top-level managers. In either case, you’ll want to ensure that key positions are filled by strong leaders who understand the changes that are about to take place and are prepared to support the new structure.
Perhaps the most important part of implementing a new organizational structure is communication. You will need to determine what level of knowledge each employee requires and ensure it is clearly provided. For example, top-level managers may need to know more about the reasons and goals behind the change than lower-level employees. Each employee, however, must be provided with adequate information to perform his or her job. Clear communication can also reduce the negative effects that changes often have on employee morale.
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